Note 24 - Share-based Compensation Expenses

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

24. Share-based compensation expenses

In

February 2020,

under its

2015

Omnibus Securities and Incentive Plan, the Company granted and issued in the aggregate of approximately

1.60

million fully-vested shares of the Company's restricted common stock to its management and employees for their services provided. These shares were valued at the closing bid price of the Company's common stock on the date of grant, which is

US$1.18

per share. Total compensation expenses of approximately

US$1.89

million was recorded for the

six

months ended

June 30, 2020.

In

March 2020,

under its

2015

Omnibus Securities and Incentive Plan, the Company granted and issued

0.03

million fully-vested shares of the Company's restricted common stock to

one

of its independent directors in exchange for his services for the year ending

December 31, 2020.

These shares were valued at the closing bid price of the Company's common stock on the date of grant, which is

US$1.11

per share. Total compensation expenses recognized for the

six

and

three

months ended

June 30, 2020

was approximately

US$0.02

million and

US$0.01

million, respectively.

In

March 2020,

the Company granted and issued

430,000

shares of the Company restricted common stock to a management consulting and advisory service provider in exchange for its service for a

two

-year period until

February 2022.

According to the service agreement, these shares are fully-vested upon issuance at the contract inception and shall

not

be subject to forfeiture upon termination of the agreement. The Company valued these shares at

US$1.11

per share, the closing bid price of the Company's common stock on the grant date of these shares and recorded the related total cost of approximately

US$0.48

million as a prepayment asset in prepayment and deposit to suppliers account upon grant and issuance of these fully-vested and nonforfeitable shares. Total compensation expenses amortized for the

six

and

three

months ended

June 30, 2020

was approximately

US$0.08

million and

US$0.06

million.

The table below summarized share-based compensation expenses recorded for the

six

and

three

months ended

June 30, 2020

and

2019,

respectively:

	Six Months Ended June 30,				Three Months Ended June 30,
	2020		2019		2020		2019
	US$('000)		US$('000)		US$('000)		US$('000)
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Sales and marketing expenses		122		-		-		-
General and administrative expenses		1,719		203		68		102
Research and development expenses		146		-		-		-
Total		1,987		203		68		102

The aggregate unrecognized share-based compensation expenses as of

June 30, 2020

was approximately

US$0.42

million, of which approximately

US$0.14

million will be recognized for the year ending

December 31, 2020,

approximately

US$0.24

million will be recognized for the year ending

December 31, 2021

and approximately

US$0.04

million will be recognized for the year ending

December 31, 2022.

Options issued and outstanding as of

June 30, 2020

and their movements during the

six

months then ended are as follows:

	Option Outstanding						Option Exercisable
	Number of underlying shares		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number of underlying shares		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price
Balance, January 1, 2020		755,216		1.15	$	2.43		755,216		1.15	$	2.43
Granted/Vested		-						-
Expired		-						-
Exercised		-						-
Balance, June 30, 2020 (Unaudited)		755,216		0.65	$	2.43		755,216		0.65	$	2.43